Chaman Metallics IPO will open for subscription from 04 January 2022. the company aims for an issue size of ₹24.21 Cr through this IPO.
About Company
Incorporated in 2003, Chaman Metallics is primarily engaged in the business of manufacturing and selling Direct Reduced Iron (i.e. sponge iron). Sponge iron is mainly used as a raw material for making steel in electric arc furnaces and induction furnaces.
The company’s manufacturing unit is based in Chandrapur, Maharashtra, and is spread across an area of around 63 acres of land. The unit has a capacity of 72,000 MT (2 X 100 MTPD) for the production of sponge iron through two Rotary kilns as of 31 March 2022.
The company sells its products primarily in the state of Maharashtra, Odisha, and Chhattisgarh. During the production of sponge iron, solid waste is produced as a by-product called dolochar. For the FY 2022, its revenue from operations stood at INR 184.87 crore of which revenue from sponge iron, dolochar, and other items contributed 97.94%, 0.99%, and 1.06% respectively.
Basic details about the company
| Full name | Chaman Metallics Limited |
| Sector | Iron & Steel |
| Industry | Steel/Sponge Iron/Pig Iron |
| Company Website | https://www.cmlgrgroup.com/ |
The objective of the Issue
- To meet Working Capital requirements.
- To meet issue expenses.
- General Corporate Purpose.
Major Competitive strengths
- Strategically located manufacturing unit
- Stringent quality control mechanism ensuring standardized product quality
- Long-standing relationship with our customers
- Well Qualified and Experienced Management Team
IPO Timetable
| IPO Opening date | 04 January 2022 |
| IPO Closing | 06 January 2022 |
| Basis of Allotment | 11 January 2022 |
| Initiation Refund | 12 January 2022 |
| Credit to Demat Account | 13 January 2022 |
| Listing Date | 16 January 2022 |
IPO details
| Issue type | Fixed Price Issue IPO |
| IPO issue size | ₹24.21 Cr – 6,372,000 shares |
| Fresh Issue | ₹24.21 Cr – 6,372,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Offer price | ₹38 per share |
| Lot size | 3000 Shares |
| Retail Allocation | 50% of the Net Issue |
| Listing Exchange | NSE SME |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 3000 | ₹114,000 |
| Retail (Max) | 1 | 3000 | ₹114,000 |
| HNI (Min) | 2 | 6,000 | ₹228,000 |
Reservation Details
| NII (HNI) Shares Offered | 50% |
| Retail Shares Offered | 50% |
Financial Performance
| FY 2020 | FY 2021 | FY 2022 | |
| Revenue | 58.01 | 140.56 | 184.87 |
| Expenses | 60.19 | 133.34 | 172.91 |
| Net income | 3.69 | 5.23 | 9.35 |
| Margin (%) | 6.36 | 3.72 | 5.06 |
Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | |
| EPS | 2.08 | 2.94 | 5.26 |
| PE ratio | – | – | 7.22 |
| RONW (%) | 15.72 | 18.20 | 24.54 |
| NAV | – | 16.18 | 21.44 |
| ROCE (%) | (2.56) | 27.59 | 25.72 |
| ROE (%) | 15.72 | 18.20 | 24.54 |
| Debt/Equity | 0.84 | 0.48 | 0.66 |
Company Promoters
- Chetan Agrawal
- Keshav Kumar Agrawal
- G.R. Sponge and Power Limited
- N.R. Sponge Private Limited
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 73.60% |
Lead Manager(s)
- Hem Securities Limited
IPO Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: : +91-22-49186200
Email: chaman.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Details
CHAMAN METALLICS LIMITED
16/167, G.R. House, Agrawal
Complex, opposite Pandey
Nursing Home, Samta Colony,
Raipur, Chhattisgarh – 492001
Phone: +91-771-4259100
Email: cs@cmlgrgroup.com
Website: www.cmlgrgroup.com
Allotment Status
Chaman Metallics IPO allotment will be available on Link Intime’s website. Click on Link Intime IPO weblink to get allotment status.
Final thoughts
Chaman Metallics IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
